Typical Tax Risks of Overseas M & A of Enterprises and Their Countermeasures

Abstract

In recent years, the proportion of Chinese enterprises participating in overseas M & A has increased year by year. Accordingly, tax disputes caused by mergers and acquisitions are not uncommon, and the disputes are followed by heavy tax fines, resulting in unprovoked losses. The reason is that it ignores the different risk points brought by different stages of M & transactions. Based on the perspective of the M & A stage, this paper makes a comprehensive analysis of the tax-related risk points of enterprises that are easy to be ignored and destructive in the process of M & A. Tax due diligence is a very important impact which could influence the entire activity. At the same time, in order to avoid such tax risks, this paper puts forward preventive measures. In the decision-making and management of overseas mergers and acquisitions of Chinese enterprises, we should constantly strengthen the awareness of tax risk prevention, and effectively integrate tax risk prevention and control into the daily work of enterprise management and financial personnel. At the same time, enterprises should establish domestic and foreign tax risk control systems, so as to better deal with the opportunities and challenges brought by economic globalization.